Turnover Formula

Industry 436 views 2 replies

yasaswi gomes

My grammar is 💯 good I

7301 Points Posted on 23 January 2021

Total turnover, that is, the aggregate amount for which sales are affected by the company, giving the amount of sales in respect of each class of goods dealt with by the company and indicating the quantities of such sales for each class separately.

Generic Turnover = Sales revenue (Cash, Receivables, Revenue from Proportionate or Completed contracts & Other consideration) + Other Income (enterprise resources yielding interest, royalties and dividends) - Sales Tax, Excise duties & Others - Goods returned - Price adjustments - trade discount - cancellation of bills - Inward supplies - Others.

Must exclude from Sales Revenue:

Deferred Revenue (Advances & Prepayments).
Commission is revenue and not cash, receivables or other consideration in case of agency relationship.
Bad debts written off & Royalties.
Sales Tax & Excise duty/ Others cannot be included if they are separately credited to their accounts.

Replies (2)

prasad Nilugal

GST Practitioner & Accounts

15093 Points Posted on 23 January 2021

1) Aggregate Turnover is define under section 2(6) of the CGST act 2017. ( SGST / UTGST Act 2017 same )

2) No Definition of Turnover under The Income Tax Act 1961 .

3) Turnover is define under section 2( 91) of the companies Act 2013 .

yasaswi gomes

My grammar is 💯 good I

7301 Points Posted on 23 January 2021

Txs

1. The taxes inclusion or exclusion solely depends upon whether if they are credited to their respective accounts. Rest all inclusions covered.

2+3 - definition: Section 2 in the Central Sales Tax Act, 1956 (indiankanoon.org)

Value of all (taxable supplies + exempted supplies + Nil Rated supplies + Zero rated supplies + Non GST supplies) – (Taxes & Compensation Cess under GST Act + inwards supplies + supplies under reverse charge)